Buying a property with section 8 Tenent.

Hello BiggerPockets community,
I’m currently in attorney review with my second multi family home. I do have one concern and I’m hoping you guys can help me out. The property comes with a section 8 Tenent they just renewed there contract January 1st and it will be up July 1st. Will I have a problem getting them out once there contracts is up? What steps should I take before closing on this house to protect myself ... thank in advance.

It would be the same as any other end of lease. Let them know you are not renewing the lease within the legal time limit. In fact, if you know now you won't be renewing, tell them now so they can start looking and maybe surrender your property early.

They are my highest paying, most stable, and easiest to deal with tenants.

July 1st is less than 4 months away, by the time you close it'll be even shorter. Hardly seems worth making a big deal about, if they don't pay in between you can evict.

@Alexander Felice Pretty interesting take. Good to hear an opposing view to what I usually see everywhere where the common theme is stay away from Section 8. Do you have a tighter screening process for Section 8 tenants or do use the same criteria for all prospective tenants?

They are my highest paying, most stable, and easiest to deal with tenants.

July 1st is less than 4 months away, by the time you close it'll be even shorter. Hardly seems worth making a big deal about, if they don't pay in between you can evict.

@Alexander Felice Pretty interesting take. Good to hear an opposing view to what I usually see everywhere where the common theme is stay away from Section 8. Do you have a tighter screening process for Section 8 tenants or do use the same criteria for all prospective tenants?

Section 8 doesn't change screening criteria, it's just a different avenue to find GREAT tenants.

People speak negatively about section 8 based on anecdotes or personal opinion viewpoints on low income individuals. Neither of these paints the proper picture of what section 8 is: Housing assistance for those with low income. It's not deadbeat central or a pool of throwaway tenants. It's just people who need help. This actually lowers the risk in my opinion: you don't have to worry if the S8 tenant is going to pay you, it comes right from the state. So when screening S8 I just have to look for character, stability, and longevity, the economic screen is moot.

People dump on the impoverished because it's easy and common, but their claims are hardly accurate and even less useful.

You have a few months to decide but if S8 prevents you from getting rents to full market or you do not want to be renting to the egovernment then to non renew is the way to go.

Some like S8, those that have had bad S8 have reason to avoid them. All tenant's are great till they are not and unfortunately the odds of bad S8 are probably higher than in the average tenant demographic.

If you are not forced to rent to S8 due to your property class or area it is probably best to avoid them. Unfortunately with C/D class properties it is often unavoidable.

@Alexander Felice , I think it depends on where your properties are and what the market rents are in your area. I don't think people slam Section 8 renters for no reason. Those claims are based on experience. Yes, your money is guaranteed, but it comes with a lot of other caveats.

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